Other than insurance-related benefits, the EDLI scheme, which is available to every Provident Fund (PF) account holder, provides other benefits as well.
EPFO’s EDLI Scheme: Did you know that the Employees’ Provident Fund (EPF), besides being a trusted investment scheme for salaried employees, comes with various other benefits for them? Let us tell you about one such benefit here.
Under the Employees’ Deposit Linked Insurance (EDLI) scheme, Employees’ Provident Fund Organisation (EPFO) account holders can become eligible for assured life insurance benefits of up to Rs 7 lakh, without having to pay any amount as premium. Sounds great, right?
Other than insurance-related benefits, the EDLI scheme, which is available to every Provident Fund (PF) account holder, provides other benefits as well. Read below for details:
- Maximum assured insurance benefits: Under this, the legal heir of a PF account holder will get up to Rs 7 lakh in the event of the demise of the EPF member in service. The cap for the same was hiked from Rs 6 lakh to the current Rs 7 lakh in April this year.
- Minimum assured benefits: These amount to Rs 2.5 lakh if the employee was in continuous service in the 12 months prior to their death.
- Free benefits: Like we told you earlier, employees are not required to pay a premium to avail benefits under the EDLI scheme. It is the employer who pays the premium, which amounts to 0.50 per cent of the monthly wages with a ceiling of Rs 15,000.
- Auto-enrolment: EPFO subscribers need not register separately to avail the EDLI scheme. Instead, they become eligible for it upon becoming members or subscribers of the EPFO.
- Direct Bank Transfer: The benefits under this plan are linked directly to the nominee’s bank account, or that of the employee’s legal heir. In case of the EPF account holder’s demise, these are transferred directly to the linked bank account.
